CSL plans for expansion
CSL has announced a $450 million investment to expand its global production capacity.
CSL collects and transforms blood plasma into sophisticated products that treat rare and serious diseases. The products are created in a globally integrated network, with sites in the USA, Australia, Switzerland and Germany. As a result of the growing global demand for lifesaving therapies, CSL is expanding its global production capacity by investing $240 million in its Kankakee site (Illinois, USA) and $210 million in its Broadmeadows site (Melbourne).
The key takeaway from this announcement is the scale of expansion in the Kankakee site. CSL has recently received approval by the U.S. Food & Drug Administration (the FDA) to commence operations in 140,000 square feet of new floor space. The additional $240 million investment, which is anticipated to be completed by 2017, will be more than double this area.
At Montgomery Investment Management, we seek companies that can invest large amounts of capital at high rates of return. CSL is one of the most efficient collectors of plasma in the world, and its ongoing investment in value-added production facilities should generate robust earnings growth over the longer-term.
CSL is a major holding in both The Montgomery Fund and The Montgomery Private Fund.
Click here to read the full announcement.
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